EU Allocates €1.07 Billion to 57 Defense Projects Under EDF 2025 Calls
The European Commission has selected 57 defence projects for €1.07 billion in funding under the European Defence Fund. The program targets capability development and research across key areas such as AI, cyber defence, and unmanned systems.
The European Commission has approved €1.07 billion in funding for 57 collaborative defense projects following the 2025 European Defence Fund calls, marking another step in implementing the EU’s Defence Readiness Roadmap 2030.
The selected projects span capability development and research activities, with €675 million allocated to 32 development programs and €332 million directed toward 25 research efforts. The portfolio covers areas including artificial intelligence, cyber defence, drones, and counter-drone technologies, reflecting a focus on emerging operational requirements.
More than 15 of the projects are linked to four flagship initiatives identified under the EU’s readiness framework: the European Drone Defence Initiative, Eastern Flank Watch, the European Air Shield, and the European Space Shield. These programs are intended to address capability gaps across air, land, and space domains while strengthening interoperability with NATO systems.
One of the projects, referred to as AETHER, is focused on propulsion and thermal management technologies to support unmanned systems. Additional cross-cutting efforts will address sensors, digital infrastructure, and cyber capabilities, supporting multiple flagship priorities simultaneously.
The funding round also includes cooperation with Ukraine’s defence industry. A project known as STRATUS is expected to develop AI-enabled cyber defence solutions for drone swarm operations and includes participation from a Ukrainian subcontractor, integrating operational experience from the ongoing conflict.
Industrial participation remains broad, with 634 entities from 26 EU member states and Norway involved. Small and medium-sized enterprises account for more than 38 percent of participants and receive over one-fifth of total funding. Several projects will open additional calls for startups and SMEs, with smaller grants designed to bring new entrants into the defence sector.
The Commission will now move into grant agreement negotiations with selected consortia, with contract signatures expected before the end of the year.
